Cabinet green signal for National Mineral Policy ’08

After several delays and false starts, the long-pending national mineral policy has finally...

After several delays and false starts, the long-pending national mineral policy has finally been granted an in-principal approval by the union cabinet today.

The cabinet also cleared a proposal to set up an independent dispute resolution mechanism- the Mining Administrative Appellate Tribunal (MAAT) within the next six months.

The implementation of the new National Mineral Policy 2008 would be likely to attract FDI to the tune of $ 250 million per annum in the mining sector by the end of five years. An amendment bill will be introduced during the budget session for bringing about suitable amendments in the Mines and Minerals (Development and Regulation) Act, 1957, the MCR rules, 1960 and MCDR, 1988 to give effect to the new policy.

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The new policy, largely based on the Hoda Committee recommendations, has been in the works for the last two years. However, the policy has become a source of debate, with mineral-rich states like Orissa, Jharkhand and Chhattisgarh expressing serious reservations on a number of issues. These include wanting more power to decide the fate of mine-based projects and grant mineral leases.

While details on contentious issues like hike in royalty and awarding mining leases were expected to be discussed today, no details are available on the deliberations. Currently, miners pay a maximum of Rs 27 per tonne of raw material.